Likely competition for generic Lialda bears on Cadila's stocks

Zydus had launched generic Lialda in US in July this year after winning patent battle with innovator Shire

Cadila Healthcare's (Zydus Cadila) blockbuster drug the generic version of mesalamine (Lialda) is likely to face competition from the innovator itself as Irish pharma firm Shire Plc is expected to launch an authorised generic (AG) version of the drug in the US market soon. The ulcerative colitis drug is estimated to have a market size of $1.15 billion and Zydus was the first to file (FTF) an abbreviated new drug application (ANDA) for a generic version of Lialda in the US.

The markets reacted by correcting in the stock price on Monday, which dipped around 5 per cent during day's trade